Indonesia’s dynamic and vast developing economy has become one of the major reasons for foreign investors to catch an eye on entering its market. The evident outlook projects the sustainable economic growth momentum in 2024, with a forecasted GDP growth of 4.9%, according to Tempo.
Despite facing continuous challenges from the lacklustre global economic environment along with several other Southeast Asia countries, Indonesia persists in outperforming leading global economies.
If you plan to join in and benefit from the Indonesian market through foreign investment, ensuring the right process and legal compliance before entering the Indonesian market is crucial to secure smooth navigation through the country’s business landscape.
For foreign investors, Indonesia provides two entry pathways that accommodate the entry and stay period within the country; Investor visa KITAS and Golden Visa. In this article, we will discuss the details of Investor KITAS and Golden Visa, who is it for, the benefits and everything you need to know about the two visa schemes.
What is the Investor Visa (KITAS)?
The Investor KITAS (Kartu Izin Tinggal Terbatas) is a Limited Stay Permit specifically designed for foreign investors who actively establish or invest in a company in Indonesia. Introduced in 2011 (revised in 2019), it simplifies obtaining residency for foreign investors establishing or investing in Indonesian businesses (PT PMA). The Investor KITAS is ideal for entrepreneurs, venture capitalists, and investors seeking hands-on involvement in their Indonesian business ventures.
Read the full information about Everything You Need to Know about Investor Visa here.
What is a Golden Visa?
Golden Visa is a residency by investment and citizenship by investment scheme. Indonesia’s golden visa policy is contained in Minister of Law and Human Rights Regulation Number 22 of 2023 concerning Visas and Residence Permits and Minister of Finance Regulation Number 82 of 2023 which was promulgated on 30 August 2023.
In order to obtain a golden visa to stay in Indonesia, foreign individual investors who will establish a company in Indonesia are required to invest USD 2.5 million to USD 5 million or around IDR 38 billion to IDR 76 billion.
Want to know more about Golden Visa? Talk to LetsMoveIndonesia’s professional consultants for a comprehensive guide and application process here.
Investor KITAS vs Golden Visa Indonesia: Which is Right for You?
The choice depends entirely on your goals. LetsMoveIndonesia breaks down the key differences between the Investor Visa and the Golden Visa to help you make an informed decision to enter Indonesia and streamline the smooth investment.
Validity
The Investor KITAS in Indonesia is a visa that grants permission for foreign investors to stay for an initial one or two years, with the potential for renewal depending on the continued viability of the investment. Meanwhile, the Golden Visa can aid a much longer stay of about 5 – 10 years and is also renewable.
Investment Requirements
To be eligible for the Investor KITAS, investors must invest a minimum of IDR 1.25 billion in shares of a PT PMA (Foreign Investment Company) in Indonesia and must have a paid-up capital of at least IDR 10 billion in their PT PMA.
Meanwhile, a Golden Visa in Indonesia requires foreign investors to invest a minimum of:
- USD 25 million in a large-sized company in Indonesia.
- At least USD 50 million in a large-sized company in Indonesia and create a minimum of 10 jobs for Indonesian citizens.
- A minimum of IDR 2 billion in a government bond.
Benefits
Both the Investor Visa and Golden Visa grant a broad spectrum of benefits for foreigners seeking to invest in Indonesia. Below are the key benefits of each Indonesia visa plan:
Benefits of using Investor Visa
- Direct control over your Indonesian business operations.
- Eligibility for Indonesian work permits.
- Multiple Entry mobility.
- A path towards an ITAP (Permanent Stay Permit) after a designated time.
Benefits of using Golden Visa
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- Extended period of stay of 5 – 10 years in Indonesia.
- Eligibility for Indonesian work permits.
- A simple procedure of stay without having to convert ITAS to ITAP.
- Multiple Entry mobility.
| Key Differences | Investor KITAS | Golden Visa |
| Validity | 1 – 2 years | 5 – 10 years |
| Investment |
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| Benefits |
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Deciding between the Golden Visa and the Investor KITAS hinges on your specific situation and goals
Golden Visa is ideal for foreign investors with the financial means to meet its high investment requirements. It offers a longer validity period (either 5 or 10 years) compared to the Investor KITAS, and potentially indefinite renewals. This makes the Golden Visa a compelling option if you seek long-term residency in Indonesia.
If the substantial investment threshold of the Golden Visa is out of reach, the Investor KITAS presents a more attainable alternative. It still grants foreign investors residency in Indonesia, although for a shorter term (typically one or two years).
Still unsure? If you’re struggling to decide which visa best suits your needs, we offer free consultations to help you navigate the process and make an informed decision.
Business Visas General Registration Requirements
Investment Requirements
Indonesia has minimum investment thresholds for foreign investors to qualify for a KITAS. The specific amount can vary based on the industry sector.
Company Establishment
A foreign-owned company (PT PMA) must be formed and registered in Indonesia. This involves having an Indonesian business partner or partners.
Supporting Documentation
- Valid Passport valid for at least 18 months beyond your intended stay.
- Company Licenses consist of Articles of Association, proof of capital investment, company registration number (NIB), and shareholder details.
- Personal Documents include passport photos, curriculum vitae, and a personal statement outlining reasons for investment.
- A Sponsor Letter from an Indonesian company or individual sponsor is required.
- RPTKA (Foreign Worker Utilization Plan)
Why Consult with LetsMoveIndonesia?
Navigating Indonesia’s immigration landscape can be complex. At LetsMoveIndonesia, our team of visa experts possess deep knowledge of both the Investor KITAS and Golden Visa programs. We’ll guide you through identifying the optimal visa for your needs, preparing and submitting flawless application packages, and providing ongoing support throughout Indonesian investment.
Don’t hesitate to reach out and we’ll be happy to assist you through your investment journey in Indonesia!
Found this article interesting? Check out our other useful articles about visas here!
Investor KITAS Update 2023: Investment for 2 Years KITAS
Tax in Indonesia 2024 – Your Most Common Questions Answered!
Indonesia Visa Regulation Updates Effective 31 December 2023
Company Registration Indonesia: What is PT, PT PMA or Representative Office
